• Binance Australia’s derivative trading business has been the subject of a „targeted review“ by the Australian Securities and Investments Commission (ASIC).
• Bloomberg recently reported that ASIC searched Binance offices as part of its ongoing probe into the exchange’s defunct derivatives business.
• The firm is also experiencing regulatory trouble in other parts of the world such as America, Europe, Netherlands, Germany and France.
The Australian market has proven to be a tough one for Binance. In April, it requested the cancellation of its derivatives license after facing a “targeted review” from ASIC. By June, it had to halt AUD deposits and withdrawals as it lost a major banking partner.
On July 5th, Bloomberg reported that ASIC searched Binance offices as part of its ongoing probe into the exchange’s defunct derivatives business. The investigation focuses on customer classification among other things, and Binance is cooperating with authorities without giving further details about the investigation.
Beside legal issues in Australia, Binance is facing lawsuits from both CFTC and SEC in the US for illegally servicing US customers along with allegations of wash trading and commingling customer deposits. It has also experienced regulatory trouble in other countries such as Germany , Netherlands and France due to stricter regulations.
As global regulations become more stringent across different markets, it is becoming increasingly difficult for crypto exchanges like Binance to operate without running afoul of local laws or risking hefty fines or outright bans.
Overall, this situation serves as a reminder of how important it is for crypto exchanges to remain compliant with local laws wherever they operate in order to avoid potential legal repercussions or restrictions on their services